Bitcoin Cash Out of Nowhere
Coinbase suddenly announced the addition of Bitcoin Cash (BCH) on Tuesday, prompting a massive frenzy of trading on its exchange GDAX. Traded prices for BCH were significantly higher on GDAX (one trade was almost $9000) than many other exchanges; GDAX was forced to halt trading for a few hours due to the volatility. And despite assurances of “confidentiality on material non-public information”, Bitcoin Cash had been steadily inching upward leading up to the listing time. People call Coinbase the crypto “kingmaker" and are salivating over which coin they will add next.
YouBit, a small South Korean crypto exchange, announced on Tuesday that it was hacked for 17% of its assets following a previous hack back in April. YouBit has filed for bankruptcy and SK law enforcement has started poking around, probably to no avail.
EtherDelta, the popular ERC20 decentralized exchange, had its DNS service breached on Wednesday for a period of time. A lookalike site was put up at the URL (minus a chat and Twitter feed) in order to phish EtherDelta users to gain access to their wallets. The site has still not been restored as of this writing. As the value of crypto grows, people are finding all sorts of creative ways to hack your wallet. Stay sharp!
Stocks + Blockchain
Multiple real-world companies, publicly traded stocks, have added “crypto” or “blockchain” affiliations in obvious attempts to ride the crypto craze. This week we saw Long Island Iced Tea (now Long Blockchain), the Crypto Company (SEC suspension), and Longfin Corp (blockchain company acquisition). Hope we as investors can learn from the 2000s Dotcom times and not make the same mistakes..
Charlie Lee Drops His Bags
Last week Charlie Lee’s media spree helped boost Litecoin (LTC) to all-time highs. This week, Charlie announced on Reddit that he quietly sold or donated all of his LTC holdings to prevent “conflict of interest” whenever he talks about the project. Markets were not amused as it seems like LTC investors are left holding onto his bags. It’s not all bad news however as Charlie has promised to “still spend all [his] time working on Litecoin.”
As I write this the overall market cap has pulled back to just under $600B in what looks like a pre-Xmas correction. We’ve had a massive run-up recently and have moved well past the $0.5T territory this week — but this is crypto so who knows, really!
See you guys next time —